Where are the settings for draw distance?
By draw distance, I'm guessing you mean viewport clipping distance. Settings can be found in 3D view > Properties region (N) > View > Clip:



That circle is called the 3D cursor. It's useful in many ways, once you get used to it ;) It is positioned by pressing LMB. To select and drag an object, use RMB.

See How do I select an object in the 3D viewport? for more details.